If you have a small business that has shown some great growth since starting, then it is likely that it would also do well in other countries. Plus, it can be a good idea to be part of that market in different countries, before someone else gets there first. If you want to take your business global then it can be a really good thing to do.
However, it will take some time and planning to get things in place as there are a whole host of considerations when you are taking your business elsewhere. So here are some things to consider.
Choose Your Market Wisely
Where do you even start when it comes to choosing which countries you will expand to? It can make a lot of sense for American-based companies to go the route that will be most similar, choosing English speaking countries like Canada, UK, Australia, and New Zealand. That can be a good thing to do, but you should also factor in where the demand for your business products or services is going to be highest. For a US-based company selling car parts, countries like Germany and Japan where car manufacturing is high, could be better options than Canada, for example. That is why it is a must to carefully think about the market that you choose and where you decide to expand to.
Learn the Local Rules and Guidelines
All countries will have some different rules of how things get done, especially when trading from overseas. So getting familiar with local laws, business guidelines, fees, and taxes is important. There may be some differing rules for how to advertise in China compared to Japan, for example, because of the kind of governments and leadership that they have. So time, planning, and research, as well as seeking advice and help for experts is important. It is important that you don’t underestimate the risks that can come from things like bribery payments and other corruption that can happen in various countries, which of course, you need to avoid. It is important to understand the risks associated with working with sourcing agents. Although they can act as a great go-between saving you from having to communicate with the factory directly, when things go wrong, they often side with the factory leaving you to pick up the pieces of your quality control issues. These varying rules across borders can make the difference in deciding if these markets are for you or not.
Localize Fulfillment
There will be a number of ‘back office’ tasks that you will have been doing for your business, but now you have to think about how they can be done from overseas. Will you hire local people to answer the phones, because of time difference, and so on? How will you store products and get them shipped if you’re based in a country far away? Then you need to consider things like bank accounts, payroll, how customers will pay in a different currency, and so on. Often, it is much like building a whole new business and fulfillment process from the start again. It will take time and effort but will be worth doing.
This is just the start when it comes to going global. But once you know how these three aspects will work, it will make the rest of the expansion plan work much more effectively.
Leave a Reply